The GCC petrochemical industry is on the verge of its largest ever expansion with the region's advantage of available feedstock coupled with the inherent economics of scale associated with large investments, creating the perfect opportunity for the region to take the lion's share of new global petrochemical capacity growth, said Qatari Minister of Energy and Industry on Thursday. ‘'The total global ethylene capacity is projected to be 160 million metric tons by 2012 with the GCC's share in the global ethylene market expected to grow to 15 percent in 2012 from 7 percent in 2002, Abdulla Bin Hamad Al-Attiyah said in a keynote speech at the 3rd Annual Forum of the Gulf Petrochemicals and Chemicals Association (GPCA) which opened here. In his address titled “ Meeting Energy and Feedstock Needs for the Region” he expressed his confidence in the capabilities of industry captains to help overcome the challenges facing the petrochemical industry. “This conference is taking place at a time when the world is witnessing dramatic changes in the oil market. The oil price reached to its highest ever in July -August 2008 and now it is selling at below $50 per barrel. Today, most of the industry analysts suggest, the petrochemical and chemical industry is approaching a period of over capacity that is accompanied by weaker markets. ‘'At the same time, we are witnessing the slowdown in global economic growth that is driven by a slowdown in the GDP growth in developed world and particularly in the US. The financial market crisis in US and Europe is making the situation further worse”. He said that the most important challenge facing the region was meeting energy and feedstock needs with growing demand of petrochemicals usage in daily life placing tremendous pressure on feedstock supply in the region. “It is understood that additional associated gas from our oil resources in the region is expected to be limited, as crude oil production is expected to only grow at incremental rates, yet the availability of methane from non-associated gas is expected to grow. We have to use our natural gas resources very strategically for energy and petrochemical projects”. The Forum provides industry experts an opportunity to share key industry insights, experiences, and discuss the global economic outlook at a critical point in the chemical industry cycle. This year's event will make serious efforts towards understanding and tackling the scope of the petrochemical and chemical industry within the context of the current financial crisis. A line-up of prominent industry figures and experts from around the world will enlighten delegates on the impact of the global financial crisis and ways of meeting the challenges ahead in the region's petrochemicals and chemicals sectors. The two-day event was inaugurated by GPCA Chairman Mohamed Al-Mady, who is also vice chairman and chief executive officer of Saudi Basic Industries Corporation (SABIC). Speaking at a press conference, Al-Mady said: “As with every other sector, we too are setting the stage to address and discuss the global financial crisis, and the impact it has on our industry. We will have much to discuss at this forum, as industry leaders focus on ways of tackling the difficult times ahead.'' Over the next two days, international experts will delve into some of the most pressing issues, exchange ideas and create the ideal setting for networking opportunities between industry decision-makers and corporate leaders. He added: “The GPCA is a young organization, and our members are representative of some of the most powerful players in the petrochemical and chemical sectors. It is our endeavor at the Third Annual GPCA Forum to jointly analyze the future of our industry within the current situation and prepare ourselves for a complex road ahead.”
